The South African National Roads Agency (Sanral) has come out swinging against allegations of sweeping procurement irregularities, saying the controversy predates its current leadership and that investigations are already well underway.
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The allegations and what Sanral says they’re really about
Media and online platforms have been circulating claims that Sanral CEO Reginald Demana has a case to answer over procurement irregularities, with reports framing the situation as a “R9.5 billion tender storm” at the roads agency.
Sanral says those characterisations are misleading and require a direct response.
The agency acknowledged that irregular expenditure of approximately R9.5 billion did exist, but said it was linked to routine road maintenance contracts awarded between 2011/12 and 2018/19, years before Demana took the helm.
“These matters predate Mr Demana’s tenure at Sanral,” the agency said. “He assumed the role of CEO on 1 January 2023.”
Sanral further pointed out that the matter had since been resolved and was fully disclosed in its publicly available annual reports.
Despite the irregular expenditure figures, the agency received an unqualified audit opinion during the relevant period, noting that no confirmed irregular expenditure was linked to fraudulent or criminal intent. “This matter was resolved and is now in the past,” Sanral said.
Whistle-blower report triggered board-level investigation
The current wave of scrutiny stems from a whistleblowing report received from the Minister of Transport’s office, which was referred to Sanral’s new board upon it assuming office on 1 March 2026.
The allegations specifically concern unlawful procurement practices within the agency’s supply chain management division.
Sanral confirmed the board had already launched investigations before the story gained media traction.
“The media interest is surfacing when the Sanral board had already embarked on investigations to determine the veracity of the allegations,” the agency said, adding that both its internal audit division and an external law firm had been brought in to probe the matter.
The board has committed to acting on whatever the investigations surface. “The Sanral board is committed to open and transparent procurement and will implement recommendations and outcomes that emerge from the investigations,” Sanral said.
No Hawks raid, just routine information request, Sanral says
Among the claims circulating online was a report that the Hawks had raided Sanral’s premises.
The agency was emphatic in its denial. “Nothing could be further from the truth,” it said, describing what actually happened as a routine inquiry from the Directorate for Priority Crime Investigation (DPCI) requesting information related to certain tenders.
Sanral said its cooperation with the DPCI was not unusual and had historical precedent.
The agency added that it “has cooperated with the DPCI in sharing tender-related information on some allegations they were investigating in the past and would continue to do so.”
It was unequivocal that “there was no raiding of Sanral premises by the DPCI and the same can be verified by the directorate [DPCI].”
Three employees suspended, court date looms
Sanral confirmed that three employees within its supply chain management division were suspended in April 2026 for gross misconduct.
The agency was careful to distinguish the nature of those suspensions, stating they were “unrelated to whistleblowing allegations.”
The suspended employees have since approached the Johannesburg Labour Court seeking to have their suspensions set aside and to return to work.
Sanral is opposing the application, with the matter scheduled to be heard on 9 June 2026. Citing the sub-judice principle, the agency said it could not provide further detail at this stage beyond what had already been filed on record before the court.
Reforms underway as Sanral vows accountability
Beyond the immediate controversy, Sanral used the statement to outline its broader stance on procurement integrity.
The agency said any official found to have wilfully or negligently breached procurement prescripts through dishonesty or collusion would face disciplinary action regardless of seniority.
“There are ongoing reforms which are currently underway in Sanral’s procurement environment under the leadership of the newly appointed board,” the agency said.
It added that it remained committed to “dealing with the procurement challenges that the organisation has experienced in order to return it to an effective and efficient enabler of economic and social development through its road infrastructure projects.”